H-ENERGY, the Mumbai-based oil and gas arm of Hiranandani Group plans to invest more than Rs. 4,500 crore in the natural gas sector in five years to develop Liquid Natural Gas (LNG) re-gasification units on the west and east coast of India along with pipeline infrastructure.

H-Energy is at an advanced stage of setting up an LNG re-gasification unit at Jaigarh port in Maharashtra. As part of its phase-1 plan, the company in 2017 signed an agreement with France-based energy company Engie to charter a Floating Storage and Re-gasification Unit (FSRU).

According to Darshan Hiranandani, CEO of H-ENERGY, the company has already acquired land for the onshore receiving facility close to the jetty where the FSRU will be anchored.

“At H-ENERGY our prime focus is on providing end-to-end solutions in the natural gas sector. The FSRU has a capacity to process 4 million tonne of natural gas per annum and will be commercially open for business in the third quarter of 2018. We plan to invest more than Rs 4,500 crore in creating LNG infrastructure on the west and east coast along with end-to-end pipelines for the benefit of customers, “Hiranandani told ETEnergyWorld in an exclusive interview.

He added that after phase- 1 of the project stabilises, the company will be setting-up a land based re-gasification plant with an annual capacity of 8 million tonne per annum.

Also, the company has already started work on Jaigarh to Dhabhol tie-in pipeline which will carry natural gas to the gas grid of GAIL at Dhabhol.

Commenting on the GST council’s decision to keep major petroleum products, especially natural gas, outside the ambit of Goods and Service Tax (GST), H-ENERGY CEO stated that GST is a step in the right direction and will boost investments in the sector. He added that at a time when the country is focussing on shifting to a gas based economy, the government should make natural gas a part of GST.

The company had received a letter of award by the Kolkata Port Trust in 2015 to set-up and operate a FSRU offshore Digha. According to the company, the FSRU will be located 115 Km into the sea within the Kolkata Port Trust boundary limits and will be connected to an onshore receiving facility at Contai through a subsea pipeline.

The company has also approached Petroleum and Natural Gas Regulatory Board (PNGRB), for laying a 700 Km pipeline to connect the East coast FSRU to major demand centres in West Bengal.